Freestanding Corner Warehouse with
For Sale
$799,900
246 Paterson Ave, Paterson, NJ 07502
Freestanding corner warehouse includes a drive-in loading dock, private office, two restrooms, basement storage, and sprinkler system.
Property Size5,000 SF
Lot Size0.11 Acres
Price / SF$159.98
Days on Market50
Property Features for 246 Paterson Ave
General Information
Standard status
Active
Size
5,000 SF
Lot size
0.11 Acres
Property subtype
Commercial
Zoning
R-3
Warehouse & Industrial
Drive-In Doors
1
Sprinkler System
Yes
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$32,180
Amenities
Central air
Central Air Cooling
Corner
Driveway-Exclusive
Forced Hot Air Heating
Building Details
Year Built
9999
Listing Agency:
REALTY ONE GROUP LEGEND
(973) 686-7777
Listed By:
MARYAM ALTADOUKA · License #277217
(862) 668-8145
Source:
Corcoran
Added: Jul 16
Changed: Sep 2
Last Checked: Sep 2 at 8:40PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of REALTY ONE GROUP LEGEND
Investment Insights
Based on property information with market context.
This freestanding corner commercial warehouse sits on a 50' x 100' lot and is designed for a combined office and warehouse operation. The space includes a drive-in loading dock, a private office, and two restrooms, along with a full basement that provides additional storage. A newly installed sprinkler system supports the warehouse improvements.
The property is located at 246 Paterson Ave in Paterson, NJ and is described as being conveniently close to major highways, with about 45 minutes to New York City. It is situated in an R-3 zone; buyers are responsible for conducting their own due diligence regarding zoning and permitted uses.
With its flexible layout and built-in office and storage components, the property may suit owner-users looking for an on-site office alongside warehouse space and loading access.
The property is located at 246 Paterson Ave in Paterson, NJ and is described as being conveniently close to major highways, with about 45 minutes to New York City. It is situated in an R-3 zone; buyers are responsible for conducting their own due diligence regarding zoning and permitted uses.
With its flexible layout and built-in office and storage components, the property may suit owner-users looking for an on-site office alongside warehouse space and loading access.
Key Highlights
- Freestanding corner commercial warehouse on a 50' x 100' lot in Paterson
- Drive‑in loading dock plus a private office for on‑site warehouse and office use
- Includes 2 restrooms and a full basement for additional storage
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$69,034
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.63%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,380,680
$1.4M
Cap Rate 7%
$986,200
$986.2K
Cap Rate 9%
$767,044
$767.0K
Market Conditions
NOI Build-Up for 5,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$86.4K $17.28/SF
− Vacancy
−$5.2K −$1.04/SF
EGI
$81.2K $16.24/SF
− OpEx
−$12.2K −$2.44/SF
NOI
$69.0K $13.81/SF
Area
Paterson, NJ
Vacancy
6.00%
Lease Rate
$17.28 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,380,680
Cap Rate 7%
$986,200
Cap Rate 9%
$767,044
Alternative Uses
Best Use
Warehouse
$986.2K
$862.9K – $1.15M
NOI $69,034 @ 7.0% cap · market cap 8.63%
Second Best
Industrial
$812.2K
$710.6K – $947.5K
NOI $56,851 @ 7.0% cap · market cap 7.11%
Theoretical Best
Office A
$1.31M
$1.14M – $1.52M
NOI $91,392 @ 7.0% cap · market cap 11.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Sprinkler system
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,056
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07502, NJ
16,592
Population
4,861
Households
3.4
Avg Household Size
35
Median Age
17%
College-Educated
78%
High-School Grad
0.9 sq mi
ZIP Area
18,436
Density / Sq Mi
$68,649
Median Household Income
$32,407
Median Earnings
$1,492
Median Rent
$347,200
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Pep's Grill & Pizza — 464 Chamberlain Ave, Paterson, NJ 07522
Frequently Asked Questions
What type of property is this?
Flex space - Freestanding corner warehouse includes a drive-in loading dock, private office, two restrooms, basement storage, and sprinkler system.
Where is this flex space located?
The property is located at 246 Paterson Ave Paterson, NJ.
What is the asking price?
The asking price for this property is $799,900.
What are key features of this property?
This property features: Freestanding corner commercial warehouse on a 50' x 100' lot in Paterson; Drive‑in loading dock plus a private office for on‑site warehouse and office use; Includes 2 restrooms and a full basement for additional storage
